Statkraft AS: BKK negotiations ended

11.11.2013 08.00 | stock exchange information

(Oslo 11 November 2013) The letter of intent from 24 January between Bergenhalvøens Kommunale Kraftselskap (BKK), Haugaland Kraft, Sunnhordland Kraftlag (SKL), Sognekraft and Statkraft has been has been terminated. It has not been possible to reach agreement as regards the value of the assets involved, and the efforts to achieve an agreement based on the intention to implement changes in the ownership structure of BKK and power plants in western Norway have therefore come to an end.

BKK is currently owned by Statkraft (49.9%), Bergen municipality (37.75%) and 16 other rural municipalities (12.35%).

The letter of intent was to form the basis for negotiations on a transaction which would contribute to:

Streamline ownership structures and facilitate closer industrial collaboration between power companies in western Norway

Facilitate sound industrial and economic development and growth for BKK, while ensuring public-sector control and strong regional ties and management

A divestment of Statkraft's shareholding in BKK

The negotiations based on the letter of intent have been lengthy and demanding, with the parties actively trying to find solutions. In spite of this, it has not been possible to agree upon a solution and find common ground as regards the value of the assets involved in the transaction. The parties have therefore agreed to end the process.